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UPDATE-1-LME aluminium stocks hit record high above 5mln T
Edited by : AL CIRCLE
1 min read
Stocks of aluminium held in warehouses monitored by the London Metal Exchange jumped to a record of above 5 million tonnes, as stocks were delivered against the LME's January contract, in part to free up capital, market participants said on Tuesday.
"We've been saying for a little while that there is a risk that these substantial aluminium stockpiles both on and off the exchange will be looking for a place to go, now that financing conditions in Europe become more problematic, "said analyst Nic Brown of investment bank Natixis
Aluminium stocks jumped by 39,075 tonnes to 5,006,525 tonnes, according to LME data which represents movements one day in arrears.
The build up was due to large shipments into the Dutch port of Vlissingen, and also Detroit in the United States, and came as the LME's January contract rolled over. The LME allows physical settlement of contracts.
In November, traders said large inflows were expected over the end of 2011 as a souring economic outlook curbed demand and a European dollar crunch intensified the need for cash.
Metal is sometimes delivered into LME warehouse because the cheaper finance can be secured against it.
"We've been saying for a little while that there is a risk that these substantial aluminium stockpiles both on and off the exchange will be looking for a place to go, now that financing conditions in Europe become more problematic, "said analyst Nic Brown of investment bank Natixis
Aluminium stocks jumped by 39,075 tonnes to 5,006,525 tonnes, according to LME data which represents movements one day in arrears.
The build up was due to large shipments into the Dutch port of Vlissingen, and also Detroit in the United States, and came as the LME's January contract rolled over. The LME allows physical settlement of contracts.
In November, traders said large inflows were expected over the end of 2011 as a souring economic outlook curbed demand and a European dollar crunch intensified the need for cash.
Metal is sometimes delivered into LME warehouse because the cheaper finance can be secured against it.
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